Correlation Between Sangsangin Investment and LB Investment
Can any of the company-specific risk be diversified away by investing in both Sangsangin Investment and LB Investment at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Sangsangin Investment and LB Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sangsangin Investment Securities and LB Investment, you can compare the effects of market volatilities on Sangsangin Investment and LB Investment and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Sangsangin Investment with a short position of LB Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sangsangin Investment and LB Investment.
Diversification Opportunities for Sangsangin Investment and LB Investment
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sangsangin and 309960 is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Sangsangin Investment Securiti and LB Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LB Investment and Sangsangin Investment is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Sangsangin Investment Securities are associated (or correlated) with LB Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LB Investment has no effect on the direction of Sangsangin Investment i.e., Sangsangin Investment and LB Investment go up and down completely randomly.
Pair Corralation between Sangsangin Investment and LB Investment
Assuming the 90 days trading horizon Sangsangin Investment Securities is expected to generate 0.62 times more return on investment than LB Investment. However, Sangsangin Investment Securities is 1.61 times less risky than LB Investment. It trades about -0.21 of its potential returns per unit of risk. LB Investment is currently generating about -0.16 per unit of risk. If you would invest 64,900 in Sangsangin Investment Securities on August 25, 2024 and sell it today you would lose (21,400) from holding Sangsangin Investment Securities or give up 32.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sangsangin Investment Securiti vs. LB Investment
Performance |
| Timeline |
| Sangsangin Investment |
| LB Investment |
Sangsangin Investment and LB Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sangsangin Investment and LB Investment
The main advantage of trading using opposite Sangsangin Investment and LB Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sangsangin Investment position performs unexpectedly, LB Investment can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in LB Investment will offset losses from the drop in LB Investment's long position.| Sangsangin Investment vs. Korea New Network | Sangsangin Investment vs. Dong A Eltek | Sangsangin Investment vs. Dreamus Company | Sangsangin Investment vs. SK Bioscience Co |
| LB Investment vs. BIT Computer Co | LB Investment vs. Lotte Data Communication | LB Investment vs. Shinsegae Information Communication | LB Investment vs. LG Display Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |